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1、The Year AheadGlobal Disputes Forecast 20232The Year Ahead|Global Disputes Forecast 2023ForewordClaudia BenavidesGlobal Chair,Dispute ResolutionForeword Welcome to the sixth annual edition of The Year Ahead.As always,this report sets out our predictions for the world of litigation and arbitration fo
2、r the next twelve months.As we have navigated the challenges of Covid,lockdowns,war in Europe and high inflation,it seems that uncertainty is the new certainty.New legal developments around the world have further complicated the commercial environment.To help understand these trends,we feature legal
3、 analysis drawn from our extensive global network.We have also drawn upon survey data from 600 senior disputes lawyers at large corporations across four continents.We reveal that while corporations expect more disputes,they continue to feel unprepared.The economic cycle has replaced Covid as the mai
4、n driver of disputes,and there are new trends around Environmental,Social and Governance disputes.We also show which industry sectors face new disputes threats,and which jurisdictions will see new legal developments.We look forward to working with you in The Year Ahead.3The Year Ahead|Global Dispute
5、s Forecast 2023ContentsContentsThe Big Picture -Economic,Political and Legal Trends 04-What Types of Disputes,and How Many?05-External Factors Posing Disputes Threats 07-Litigation Preparedness 08Key Issues -Cybersecurity and Data Disputes 09-Environmental,Social and Governance Disputes 11 -Post-M&A
6、 Disputes 13-Tax Disputes 15-Employment Disputes 17Industry Focus -Consumer Goods and Retail 19 -Energy,Mining and Infrastructure 20 -Financial Institutions 21-Healthcare and Life Sciences 22-Industrials,Manufacturing and Transportation 23-Technology,Media and Telecommunications 24Regional Developme
7、nts -Asia Pacific 25 -Europe,Middle East and Africa 27 -Americas 31Contacts 334The Year Ahead|Global Disputes Forecast 2023The Big PictureThe impact of Covid is receding in many parts of the world,but not all.Chinas economy is cooling,partly due to its zero-Covid policy.And as one threat recedes,oth
8、ers emerge.Supply chain disruption caused by Covid,along with Russias invasion of Ukraine and the energy crisis in Europe,have led to widespread global inflation.Central banks have reacted with interest rate rises,bringing to an end the era of cheap money which has existed in many economies since th
9、e financial crisis of 2008.The Organisation for Economic Co-Operation and Development(OECD)predicts annual growth in the world economy of just 2.2%in 2023,well below historic trends.Global trade has taken a knock,as governments place greater value on security of supply,and deploy international trade
10、 and sanctions as a means to drive political objectives overseas.Corporations are focusing on supply chain resilience,given ongoing challenges.Covid also accelerated the process of digital transformation.Many global organizations pivoted to new business models in response to disruption,building new
11、products and services,and making strategic acquisitions.The world of work has changed,with greater emphasis on workforce flexibility,and growing labor shortages.However,labor shortages are likely to ease as economic growth slows.Several developed countries,particularly in Europe,are forecast to ente
12、r recession this year.Businesses are already preparing by reducing headcount.This is a time of great change,and this change has placed corporations under strain.Many are renegotiating deals that no longer work in the current environment,forging new partnerships as they adjust operational and busines
13、s structures,or divesting assets.As usual,these trends have an impact on international disputes.The initial wave of Covid-related cases concerning commercial contracts and securities has given way to a broader range of disputes around supply chains,construction projects,employment issues and sanctio
14、ns.We anticipate an increase in fraud,insolvency and insurance claims.The legal world itself has not stood still,particularly on jurisdictional issues.Russian courts have ruled that sanctions imposed on Russian entities are a basis to avoid jurisdiction agreements.The obligations of EU countries und
15、er international investment treaties are regularly being breached as the EU courts and institutions seek to assert their jurisdictional dominance.The government of Dubai abolished a widely-used and respected arbitration institution,leaving disputes clauses pointing to a non-existent body.We will als
16、o see changes to litigation funding in 2023.Some jurisdictions are approaching maturity,with established standards and the development of secondary markets.Others are still trying to find the correct regulatory balance.And the stream of cheap capital which has flooded towards funders in recent years
17、 may now begin to recede.The Big PictureEconomic,Political and Legal Trends5The Year Ahead|Global Disputes Forecast 2023The Big PictureWhat Types of Disputes,and How Many?To support this report,we surveyed 600 senior lawyers from large organizations around the world,asking their views on the key dis
18、putes risks in the next twelve months.82%of respondents expected the number of disputes in 2023 to either stay the same or increase.Only 17%of respondents expected a decrease.This was a consistent view across all geographic locations,but results varied significantly by industry.The Industrials,Manuf
19、acturing and Transportation sector showed the greatest balance towards future increases.Technology,Media and Telecoms was the only sector to show an overall balance towards falling volumes.We also asked what types of disputes present a risk to respondents organizations in 2023.The results were clear
20、:cybersecurity and data disputes are the primary risks.Environmental,social and governance disputes are a close second.The“big two”mirror our results from last year.However,there are important changes.In some industry sectors,such as Energy,Mining and Infrastructure,and Healthcare and Life Sciences,
21、concerns over ESG disputes now surpass those for cybersecurity and data.Organizations are also concerned about different types of ESG disputes to those they most feared 12 months ago.Overall,do you expect to see the number of disputes in 2023 increase,decrease or stay the same as compared to this ye
22、ar(2022)?Financial InstitutionsTechnology,Media&TelecomsHealthcare&Life SciencesEnergy,Mining&InfrastructureConsumer Goods&RetailIndustrials,Manufacturing&TransportationTotal25%18%28%28%24%33%26%12%27%23%14%15%17%61%54%48%56%61%57%56%The same level of disputes as 2022Increase in disputesDecrease in
23、disputes9%6The Year Ahead|Global Disputes Forecast 2023The Big PictureEnvironmental disputes are important,but corporations are now more concerned about governance disputes.Governance risks go to the heart of an organizations decision-making and culture.Cases that attack a corporations integrity in
24、the market can have high reputational stakes,and sometimes existential risks.What types of disputes present a risk to your organization in 2023?What types of disputes present a risk to your organization in 2023?(Breakdown of ESG risk)Insurance disputes make up the top three,in a significant rise fro
25、m last years survey(from 26%in 2022 to 35%in 2023).Insurance and reinsurance disputes typically rise when the economy cools;claims thresholds are triggered and organizations look to recover losses.Other types of disputes near the top of the list include product quality,public law,securities and tax.
26、Cybersecurity/data Environmental/social/governance(ESG)InsuranceConsumer/product qualityPublic lawSecuritiesTaxCommercial/contractFraudTradeRestructuring/insolvencyEmploymentAntitrustIP/brandCorporate including post-M&A disputesReal estate62%58%37%27%20%16%21%18%16%11%21%17%18%10%GovernanceEnvironme
27、ntalSocial36%31%12%14%12%7The Year Ahead|Global Disputes Forecast 2023The Big Picturefrom the Ukraine-Russia war.However,the majority of those impacts are indirect,and even direct effects may not offer a practical cause of action.We also asked our respondents about specific risks such as external an
28、d internal investigations,and class actions.We found concerns across the board:87%were concerned about an internal investigation next year,86%were concerned about an external investigation,and 85%were concerned about class actions.These figures represent significant increases from last year,especial
29、ly for internal investigations(65%in 2022).This may be a reflection of the economic headwinds ahead:experienced legal counsel know that difficult trading conditions increase the temptation for improper behavior,and reduce the ability of transgressors to hide it.Last years survey showed Covid as the
30、greatest external factor posing a disputes threat.Concerns about Covid have now receded,and have been replaced with concerns about disputes caused by the economic cycle or stock market volatility.This is a consistent pattern across all the geographic regions we surveyed.External Factors Posing Dispu
31、tes ThreatsWhich of the following external factors poses the greatest potential threats to your organization in terms of increasing its exposure to disputes?Other rising threat factors include the competitive environment and geo-political issues.Amongst those citing geo-political issues,the dominant
32、 responses were around the US,Brexit and China,with Russia featuring lower down the list.This may seem a surprising result:many international corporations are experiencing an impact Economic cycleStock market volatilityCovidCompetitive environmentGeopolitical issuesCybersecurity/data privacySupply c
33、hain issuesConsumer class actionsChanging technology/digital transformationGrowing regulatory/law enforcement scrutinyChallenges of doing business in emerging marketsSocial justice issues,e.g.,#metoo,BLMLabor market issuesRising environmental awareness45%38%30%25%18%14%7%24%18%13%24%16%17%12%8The Ye
34、ar Ahead|Global Disputes Forecast 2023The Big PictureOur survey shows that,despite the risks,organizations still feel unprepared for litigation.Only 22%of respondents were fully confident or very confident in their organizations level of preparedness for litigation.The lowest-scoring sector was Ener
35、gy,Mining and Infrastructure,where just 15%of respondents felt fully or very confident.On a geographic split,scores Litigation Preparednesswere lowest in Brazil,with an equivalent figure of just 12%.Organizations also lack confidence in finding the right services for litigation and arbitration suppo
36、rt.These services typically include document review,legal project management,translations and transcriptions.Only 13%were fully or very confident on this topic.Our Litigation Intelligence Tool will help you assess your preparedness compared to others in your industry and identify opportunities to st
37、rengthen your approach.How confident are you in your organizations level of preparedness for litigation?How confident are you in finding the right services for litigation or arbitration support?Fully confident Very confident Moderately confidentNeutral Slightly confidentLow confidenceNot at all conf
38、ident2%20%44%10%22%3%0%Fully confident Very confident Moderately confidentNeutral Slightly confidentLow confidenceNot at all confident2%11%55%10%20%2%0%9The Year Ahead|Global Disputes Forecast 2023Key IssuesFor the second year running,cyber and data disputes topped our list of dispute types presenti
39、ng a risk.Cybersecurity incidents involve financial,operational and reputational damage,and they are becoming more frequent.Ransomware attacks saw a 13%increase last year,with a move towards more sophisticated methods.This includes“double extortion,”in which threat actors not only encrypt files but
40、take a copy and threaten to release these if the ransom is not paid.“Triple extortion”involves demanding ransom payments from the victims clients or suppliers whose data was compromised.Ransomware is increasingly offered as a service,with software capable of exploiting vulnerabilities being sold to
41、perpetrators who are not technically sophisticated enough to develop it themselves.We have seen instances of victims paying for decryption keys that then do not work,thought to be due to incompetence rather than malice.However,lack of expertise does offer law enforcement a better chance of tracing t
42、hose responsible.There is also a trend for attacks targeting non-personal data such as trade secrets and other commercial data.Other attacks ignore data altogether and target control systems.These may be against critical infrastructure systems,such as power generation,water treatment and food proces
43、sing facilities.It is not only high-profile organizations being targeted.Evidence in the US suggests that the scrutiny caused by pursuing so-called“big-game”targets has led hackers to shift their focus onto smaller,less high-profile ones.In our survey,respondents cited time and again the difficulty
44、of recruiting and retaining suitably skilled security personnel in the current environment.Many organizations felt exposed through a lack of the right people on the job.It was also clear that survey respondents were not just concerned with the electronic environment.Many see the greatest risks comin
45、g from areas that receive less attention:physical access to buildings,disposal of paper records,or simply employees discussing the corporations details Key IssuesCybersecurity and Data Disputes“As we are a big organization there are frequent times when all teams across the globe are not on the same
46、page regarding cybersecurity,so it leads to a risk.”Functional Head at IMT corporation,USD 10 billion+revenue10The Year Ahead|Global Disputes Forecast 2023Key Issueswith friends and relatives,or in a public place.Meanwhile,the claims keep coming.In Europe,group data claims are being driven by an exp
47、ansion of litigation funding,a rise in litigious consumer associations,and procedural reforms.National provisions necessary to comply with the EU Collective Redress Directive must take effect by June 2023.This requires all member states to allow qualified representative entities to be appointed that
48、 can bring collective actions on behalf of consumers in a wide range of areas,including data protection.We expect to see mass litigation in data claims continuing to grow in the UK,the Netherlands and Italy,and in the medium-to-longer term,in France,Belgium and Spain.However,difficulties remain in e
49、stablishing common issues across a class,and in most jurisdictions,claimants still need to opt in.This potential obstacle is driving creative solutions by claimant law firms in the UK,we have seen efforts to reframe group data claims as competition law issues,such as abuse of a dominant position,whi
50、ch would then allow claims to be brought on an opt-out basis.Whether such claims succeed remains to be seen.Although the majority of data claims still relate to breaches that result from hacking,there is an expanding number of class action claims being pursued against business models that use data,i
51、ncluding claims against proprietary databases that have value and can be licensed to others,cases around third-party cookies used for ad tracking,particularly against data brokers,and claims against services,such as social media sites,who employ data for other purposes,such as advertising.In Califor
52、nia,most provisions of the California Privacy Rights Act(CPRA)became operative on 1 January 2023,with some look-back provisions to January 2022.The CPRA enhances the privacy protections introduced by the California Consumer Privacy Act in 2020 and applies to companies worldwide“doing business”in Cal
53、ifornia.Under the amended provisions,from 1 July 2023,the California Privacy Protection Agency will have the authority to bring administrative enforcement actions for alleged violations.The changes also expand the private right of action available to consumers to a wider range of personal informatio
54、n.“Dealing with outdated technology is a huge concern.Legacy systems are a prime target for bad actors.”Head of Risk at TMT corporation,USD 10 billion+revenue11The Year Ahead|Global Disputes Forecast 2023Key IssuesOver half of our respondents said that ESG disputes presented a risk to their organiza
55、tions in the coming year.And as we have seen,concerns over governance disputes overtook environmental disputes for the first time this year.Governance disputes are about the way an organization is run.They may be based on broad legal duties,such as the Caremark duties in Delaware,which effectively r
56、equire directors to oversee in good faith the corporations compliance with relevant laws.Other broad duties include human rights legislation or anti-bribery and corruption rules.Alternatively,disputes may have a more specific legal foundation,such as modern slavery or conflict minerals legislation.W
57、hat they have in common is a direct challenge to a corporations integrity and reputation in the market.The lawyers in our survey gave remarkably consistent comments on this topic.They see the key risk as the board.They worry over its composition,quality,and experience.They have misgivings over remun
58、eration structures and conflicts of interest.And they particularly dislike their advice being ignored by directors.Environmental,Social and Governance DisputesMany believe disputes can be prevented by a clear strategy,clear roles,and good systems and controls.Above all,they see good communication wi
59、thin the organization as the key to good decisions.Governance risks for organizations will continue to widen this year.National governments are enacting more legislation in this area.International standards are also increasing,such as the UNs continued work on developing an instrument on civil claim
60、s arising from business-related human rights violations.Meanwhile there is continued focus on making parent corporations responsible for the actions of subsidiaries,and organizations accountable for supplier conduct.Organizations are becoming more accustomed to auditing their supply chain,but need t
61、o take care.What may look like best practice in the conduct of a due diligence exercise may have unintended and unhelpful consequences for litigation strategy if the corporation is targeted with a claim.Environmental disputes remain high on the radar.Greenwashing disputes are on the rise,arriving on
62、 general counsels desks through a confusing array of regulatory and litigation“Governance disputes start where there is lack of communication and lack of understanding between higher and lower management.”Legal Professional at TMT corporation,USD 10 billion+revenue12The Year Ahead|Global Disputes Fo
63、recast 2023Key Issuesroutes,including advertising and antitrust regulators,consumer protection claims and securities litigation.This area is dominated by concerns over climate change.The number of climate change cases continues to rise,spreading from the US to other jurisdictions.Industry trackers s
64、how that major new cases are emerging at a rate of around three per month.Many cases are brought by activists seeking disclosure of key information or to challenge climate policies.Our survey respondents were particularly concerned about extreme weather events and the disruptive effect they can have
65、 upon a corporations production and other activities.When global supply chains are already under stress,lost production days due to floods or storms can cause real issues,both practical and legal.We may see a decision this year from the Paris courts in a major climate change case against French oil
66、giant Total.The case has been brought by a coalition of NGOs and local authorities,which seek an order for Total to“take the necessary measures to drastically reduce its greenhouse gas emissions.”Parallels have been drawn with a similar case in the Netherlands in 2021.Whilst corporations have no sho
67、rtage of issues,governments have wider problems still.There is an increasingly obvious conflict between international investment law and international climate change obligations.It is difficult for governments to take action to tackle climate change without affecting investors,and expensive disputes
68、 often result.Russias invasion of Ukraine,and the subsequent energy price spike,have showngovernments in Europe and beyond the risks of energy dependency.Some will seek a quick fix in fossil fuels from domestic sources or trusted partners.This may run against environmental objectives,adding fuel to
69、the activists fire.Social disputes remain a risk but are harder to define.Many of our survey respondents see these disputes as predominantly around discrimination,particularly in the employment context.Some organizations feel that failure to take part in political actions can lead to risk from withi
70、n their workforce.Our values:Baker McKenzie is a signatory to the UN Global Compact.View our progress,or read more about our CSR initiatives or our commitment to inclusion,diversity and equity.13The Year Ahead|Global Disputes Forecast 2023Key IssuesGlobal M&A volumes hit a record high in 2021,breach
71、ing USD 5 trillion for the first time.This post-Covid surge was triggered by low costs of borrowing and high valuations.The boom peaked in the final quarter of 2021,and we have since seen twelve months of cooling activity.Many deals were done at speed and with limited due diligence.Parties may have
72、agreed terms that look uncomfortable with the benefit of hindsight.This can have compliance consequences,sometimes priced into the deal.The other likely consequence is post-M&A disputes.These disputes can be exacerbated when valuations fall,as there is greater scope for deals to underperform expecta
73、tions.Sellers see reduced earn-outs and buyers see lower returns.They look for legal answers.In the coming year we expect to see a rise in post-closing contractual disputes based on purchase price adjustments,Post-M&A Disputesrepresentations and warranties,indemnities,pre-contractual disclosure and
74、post-closing cooperation.We will also see related tortious claims,which take various forms in different jurisdictions but have at their core a wrongful act against shareholders.We also anticipate a rise in distressed M&A,as the global economy slows.Many of these deals will eventually lead to dispute
75、s.Recent years have also seen growth in the use of warranty and indemnity insurance,Domestic commercial contractDomestic business sale and purchase agreementCross-border commercial contactCross-border business sale and purchase agreementCourts61%40%55%44%Arbitration institution38%58%45%56%Other 1%2%
76、Preferred dispute resolution mechanisms14The Year Ahead|Global Disputes Forecast 2023Key Issuesboth in the US market and beyond.This,coupled with high transaction volumes,will lead to increased claims against these policies.Similarly,some jurisdictions have seen the growing popularity of clauses shi
77、fting antitrust risk in the deal;these may be effective,but where there is scope for uncertainty they will end up in dispute.Sellers must also take care over ESG warranties;these are increasingly common,but provide a ground for a claim where obligations are not met.As many of these disputes will end
78、 up in arbitration,or other specialist confidential mechanisms,it makes trends hard to analyze.Our survey asked respondents where they preferred to resolve contractual disputes.This revealed a clear preference for arbitration over the courts in business sale and purchase agreements.This balance of p
79、reference varies significantly around the world,but where arbitration is preferred it tends to be because the courts are less experienced in these cases,the matters are of higher value,and confidentiality is a bigger concern for the parties.To address this relative lack of information,further resear
80、ch has been carried out by Baker McKenzie into publicly available post-M&A judgments and awards,along with our own database of cases.The results bear out our practitioners experience:claimants success rate in these claims is relatively low,particularly with warranty claims.Indemnity claims have more
81、 success.It is also rare to see disputes around material adverse change clauses.This may change as the turbulence of recent times feeds through to courts and tribunals,but we do not anticipate a significant rush of cases.15The Year Ahead|Global Disputes Forecast 2023Key IssuesOne in five(20%)of our
82、survey respondents expected tax disputes to present a risk to their organization next year.The perceived risk is particularly high in the EMI sector(28%).Geographically,the figure was highest in Brazil(29%).We also found that expected risk was lower for relatively smaller or larger organizations,but
83、 peaked for mid to large-sized firms with turnover in the USD 2 billion to USD 10 billion bracket.We are seeing year-on-year increases in the number of tax disputes and audits being brought.This represents a significant challenge to organizations,stretching tax resources to respond to wide-reaching
84、policy change.A separate Baker McKenzie survey last year Risk Reshaped:Tax Disputes Outlook 2022-2025 found that organizations are now managing an average of 20 live disputes and audits apiece.This comes alongside a marked increase in the value of tax disputes,a trend that we expect to continue this
85、 year.While some organizations have grown through the pandemic,the financial position of others suffered.There remains the potential for large tax adjustments,including those relating to historic tax years due to a lag in audit periods,which represent significant challenges to organizations financia
86、l performance.Digital transformation is also changing tax exposure and driving a rise in disputes.As non-digital organizations embrace technology at scale or remote working arrangements,many will face new and unfamiliar tax considerations.These changes to business and operating models are likely to
87、affect organizations tax exposure,giving rise to transfer pricing complexity,new permanent establishment risks,indirect tax liabilities and tax controversy inherited through M&A.A failure to grasp the tax implications of these changes represents a real threat to organizations that are already experi
88、encing high levels of disputed tax.Digitalization gives rise to other challenges,as tax laws struggle to keep pace with rapidly evolving technology and the new ways of working it offers.The lack of clarity around the proper tax treatment of these new technologies and situations for tax purposes incr
89、eases the likelihood of disputes.ESG considerations are playing an increasing role in the management and resolution of tax disputes,as,depending on the circumstances,boards and management may elect to settle disputes privately rather than litigate publicly,in order to avoid negative attention,even i
90、f this means a higher adjustment.As a result,advance tax rulings and negotiated settlements will continue to gain relevance in dispute resolution.However,as tax authorities come under pressure to raise revenue and the value of disputes rises further,the balance may tip in favor of litigation.Inherit
91、ed tax controversy remains a major risk area.Transactions often include tax risk acquired from the target.We have described in the section above how the recent M&A boom has often led to expedited due diligence.In the tax context,organizations may also be moving rapidly to execute deals before a chan
92、ge in tax policy or the tax rate.Tax Disputes16The Year Ahead|Global Disputes Forecast 2023Key IssuesFast-tracked processes can mean gaps in due diligence or leave acquirers without a full understanding of the targets tax position,leading to potentially costly post-integration restructuring and subs
93、equent investigations.It is also becoming increasingly common to see post-transaction litigation between buyer and seller or between a spun-out entity and its previous owner about legacy tax issues.Changes to international tax policy and the implementation of these reforms are a potential source of
94、future disputes.The proposed OECD reforms known as“Pillar One”and“Pillar Two”have been broadly welcomed by tax leaders.However,the rules are complex,the timeline for implementation remains unclear,and significant uncertainties persist about where the burden of tax changes will rest.There is potentia
95、l for tension between global cooperation and national interests,particularly as raising tax revenue has become a post-pandemic priority.Varying interpretations of international tax rules designed to maximize tax revenue locally are expected to be particularly problematic.There are also concerns abou
96、t the imbalance in the ability of OECD members to enforce proposals.In addition,for the majority of multinational groups not captured by Pillar One,regular transfer pricing disputes will continue to be a major source of uncertainty and risk.“Tax risk has been reshaped by a changing business environm
97、ent,fiscal budgetary pressures,and more aggressive enforcement.”Chief Legal Officer at Consumer Goods&Retail corporation,USD 50 billion+revenueTo learn more about transfer pricing disputes,read our latest report in conjunction with Bloomberg:The Global Landscape of Transfer Pricing Controversy:Trend
98、s You Cant Afford to Ignore.17The Year Ahead|Global Disputes Forecast 2023Key IssuesIncreased employee mobility and the tight job market,making it harder for employers to fill vacancies,are the major factors behind an uptick in restrictive covenant enforcement claims filed by employers,particularly
99、across North America and the Asia Pacific region.More than ever,employers are seeking to enforce restrictive covenants when workers quit their jobs,including non-competition agreements,confidentiality agreements,and agreements not to solicit employees or clients.In the US,a state-by-state trend towa
100、rds restrictions in restrictive covenants has made it important for employers to be creative in how they utilize and enforce these agreements.A number of risks result from the post-Covid return to the office.There is frequently a mismatch in employer and worker expectations around what hybrid workin
101、g looks like in practice.Tensions between accommodating a desire for flexibility and establishing effective working relationships and culture are a potential breeding ground for employment disputes.Employees who have the choice to work remotely may be at risk of slower career advancement than collea
102、gues who have returned to the office regularly.As well as potential discrimination and other claims arising out of failure to promote,or termination of employment,employee relations issues more generally could give rise to general worker discontent,grievances and disputes.In the US,medical or religi
103、ous accommodation claims continue as employers bring more employees back to the office or brick-and-mortar workplace whilst Covid remains in circulation.Some medical claims concern Long Covid,which has been recognized as a disability by the US Equal Employment Opportunity Commission.Requests for rel
104、igious accommodations include requests to be exempt from mandatory vaccination policies as well as mask-wearing and periodic testing.In North America and Europe,unions are becoming more active.The rise in industrial action,spurred on by the current economic climate and cost of living crisis,means we
105、 anticipate an increase in litigation between trade unions and employers,as well as against governments.We are also seeing signs of governments preparing for future unrest:for example,the UK recently made controversial changes to trade union law,enabling employers to engage temporary workers to cove
106、r striking workers,and increasing the liability of trade unions for unlawful industrial action.In the US,we expect to see more claims against corporations of unfair labor practices and violation of employees rights as unionization efforts resurge.This is partly fueled by the Biden administrations pr
107、o-union policies,which continue to take form.Equal pay claims are still on the rise.With the recent increase in pay transparency laws in the US,including required disclosure of salary and wage ranges in job advertisements,and with pay transparency under discussion as part of the EUs proposed equal p
108、ay and pay transparency directive,we expect to see more claims in this area.Misclassification and related claims are still an ongoing risk,as the gig economy grows and governments continue to adjust frameworks Employment Disputes18The Year Ahead|Global Disputes Forecast 2023Key Issuesfor recognizing
109、 employment relationships.For example,in the US there is a new proposed rule by the Biden administration on independent contractor misclassification that is likely to make it more difficult for employers to classify workers as independent contractors.There have also been movements in several Asia Pa
110、cific jurisdictions aimed at increased protection of workers in the gig economy.Workforce litigation derived from restructuring and reorganization measures is likely to rise as more organizations look to reduce costs through workforce reductions and other cost-cutting measures.We anticipate challeng
111、es to dismissals,layoffs and furloughs,such as alleged inappropriate notice,unfair dismissal,invalid dismissals for failure to follow proper process,or discrimination,amongst other claims.In Europe we are seeing unions and works councils scrutinizing terminations and finding new ways to challenge th
112、ose.Finally,increased legislative protection for whistle-blowers in Europe and the Asia Pacific region such as Australia and Japan means we are likely to see a rise in complaints and associated litigation.“Because of Brazilian culture,more than 30%of dismissed employees go to the courts with claims
113、to increase the amounts received with the termination.”Brazilian-based Head of Compliance at TMT corporation,USD 500m+revenueTo learn more about whistleblower complaints in Asia Pacific,explore Baker McKenzies custom research:Asia Pacific Whistleblowing Landscape:Benchmarking and Best Practices19The
114、 Year Ahead|Global Disputes Forecast 2023Industry FocusOver half of our respondents in this sector expect cybersecurity and data disputes to be a risk to their organizations in the coming year.Multiple surveys show that retailers face a higher incidence of cyberattacks than any other industry,partic
115、ularly around attempted account takeovers and malicious bot traffic.ESG disputes are identified as a risk by almost half of respondents.We anticipate growing litigation between brands and suppliers around suppliers claimed ESG credentials,and liability for any regulatory defaults.Plastics litigation
116、 is also a key trend,often involving an allegation that producers have falsely advertised the recyclability of their products.Operators in this sector are also concerned about disputes arising from the economic cycle.Increased prices,labor shortages and energy price volatility are all likely to feed
117、 supply chain and wider disputes in the coming year.Commerce in the metaverse is a current hot topic,but we do not anticipate a rush of disputes in the next twelve months.In the longer term we can expect to see disputes around unauthorized use of IP rights,unsolicited marketing,fraud and unfair comm
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